The L2 scaling solution market is experiencing massive funding rounds fueled by VC money, points farming, and airdrop hype. This inflates costs, making serious L2 launches exponentially more expensive.
Many L2s are unlikely to become self-sustaining once incentives wane, potentially leading to significant token price drops (90-97%) for OP, ARB, MATIC, and others.
Early investors may pull back as they realize projects are overvalued based on TVL and hype.
This could trigger mass unlocks, token delistings, slashing penalties, and a long crypto winter (5-10 years).
The bursting bubble will occur when investors recognize their capital won’t return due to unprofitable infrastructure.
A true omnichain revolution will reshape various sectors seamlessly in the long-term.
